The latest Government grants and loans to support your business during the pandemic.
Self-Employment Income Support Scheme
The fourth grant is available now, covering the 3-month period from 1 February 2021 to 30 April 2021. The grant is equal to 80% of 3 months’ average trading profits and will be paid out in a single instalment capped at £7,500 in total.
To be eligible for the fourth grant, you must be self-employed or a member of a partnership, with trading profits of no more than £50,000.
You must have traded in both the 2019/20 and 2020/21 tax years (and submitted your tax return for 2019/20 by 2 March 2021), must be currently trading but are impacted by reduced demand due to coronavirus, or have been trading but are temporarily unable to do so due to coronavirus. When making the fourth grant you must declare that you intend to continue to trade and reasonably believe that there will be a significant reduction in your trading profits.
The grant is subject to Income Tax and self-employed National Insurance Contributions and must be reported on your 2021/22 Self-Assessment tax return.
On application you will be told straight away if your grant has been approved and funds will be paid directly into your bank account within six working days.
Applications for the fourth grant are open until 31 May 2021.
The fifth and final grant instalment will be available to claim from late July, covering May to September 2021.
Local Authority Discretionary Fund
A £120 million fund will be distributed by local authorities across Scotland aimed at helping with short-term financial challenges. This is directed at all sectors who have been adversely impacted by restrictions and regulations introduced to control the spread of coronavirus. Eligibility is determined by local authorities. The priority is for local, small, medium and micro businesses, SCIOs, charitable organisations and social enterprises are also eligible. The grants are intended to support losses to date and are not intended to start up activity. One-off grants are available depending upon number of employees.
Recovery Loan Scheme
The scheme ensures that businesses of any size can continue to access loans up to £10 million once existing COVID-19 schemes close. The UK Government will guarantee 80% of finance to the lender. The finance can be used for any legitimate business purpose including growth and investment.
Applications open now until 31 December 2021.
Coronavirus Job Retention Scheme
The scheme was extended and will now run until 30 September 2021. Businesses can apply to furlough employees rather than make them redundant. The UK Government will provide a grant to cover 80% of wages, up to a cap of £2,500 per month for the time spent on furlough. The level of contribution will change each month from July to September with employers required to contribute from July. Employees can be fully furloughed or on flexible furlough.
Business Rates Relief
The Scottish Government has introduced extra rates relief for owners of non-domestic properties to deal with the impact of coronavirus. This includes 1.6% relief on all non-domestic properties in Scotland, 100% rates relief for retail, hospitality and leisure businesses. The rates relief will be applied to your bill automatically by your local authority.
Small Business Bonus Scheme
The scheme is administered by your local authority and is dependent on the rateable value of your business premises. If your business property has a rateable value of £18,000 or less, you may be entitled to relief on business rates. This relief is not automatic, and you must apply to your local authority. Relief is also available if you have multiple properties with a combined rateable value of less than £35,000, but each individual qualifying property must have a rateable value of £18,000 or less.
Further information
Details of grants available to businesses in Scotland can be found at the following address:
https://findbusinesssupport.gov.scot/coronavirus-advice